Posts Tagged ‘tax strategies’

Employing Variable Cylinder Management technology (VCM), Honda Accord Hybrid is the first hybrid vehicle to deactivate three of its engine's six cylinders in certain conditions like highway cruising for greater fuel efficiency without affecting its performance.

The new 2005 V6 Accord Hybrid integrates the fuel economy of a four cylinder compact Civic and high-level performance.

Combining VCM with Honda's Integrated Motor Assist hybrid technology, Honda Insight and Civic Hybrid captured four of the top five slots in the EPA 2004 fuel economy ratings. In 2005, Honda-developed fuel cell stack featuring increased performance and fuel efficiency, reduced cost and the capability to start in below freezing temperatures.

The Internal Revenue Service has certified the 2006 Toyota Highlander Hybrid as being eligible for the clean-burning fuel deduction. This certification means that taxpayers who purchase one of these hybrid vehicles new during calendar year 2005 may claim a tax deduction of up to $2000 on Form 1040.

Under Working Families Relief Act of 2004, which was signed into law in October of 2004, the clean-burning fuel deduction is limited to up to $2,000 for certified vehicles first put into service in 2005 and $500 for vehicles placed in service in 2006. No deduction will be allowed after 2006.